The Difference Between a Flat-Fee Brokerage and Houwzer

Posted on Apr 29, 2016


This question comes up all the time – are you a flat-fee brokerage? In short, no, we are not. Let’s go over the differences.

Generally, when consumers deal with a flat-fee brokerage, they are receiving an à la carte service. As a subscriber to this type of service, you may choose from offerings such as a listing on MLS, support from an agent, pictures, or open house scheduling. Rarely are all these services available for the standard fee and it is usually limited.

Another important caveat of a flat-fee brokerage is the timing of your payment. You pay these services upfront. It is not contingent on whether you sell your house.

Let’s take a look at the company Savvy Lane who operates on the other side of the country. They offer four packages ranging from $95 to $895. If you take a look at their chart comparing the packages, you’ll see that the level of package you have dictates which services you receive and to what degree you will receive them. Notice that photos are provided in all the packages, but they aren’t professional photos until you get to the Premium package.

One thing Savvy Lane does understand is the idea that traditional real estate marketing is dead. Look what they say on their website:

“With the accessibility of MLS listing on various websites, survey shows that 90% of buyers start looking for properties on the internet. Thus, the average listing agent have little more to offer than what Flat Fee brokers are offering, but they collect a sizable amount of commission when the home is sold. Naturally, traditional agents resist this change and will try to convince you otherwise.”

But when you read on through Savvy Lane’s model, you will begin to see the difference between the Houwzer model and flat-fee brokerage models. The flat-fee brokerage, even at it’s highest level, is only increasing your exposure on the internet. However, should someone be interested in your home, you are the one who needs to seal the deal. All leads are sent to you. It’s your phone number on the sign outside your door.

In short, a flat-fee brokerage is a service to assist For Sale By Owners. You are still basically selling your home yourself, but you get the coveted access to the MLS.

Now – here is where Houwzer is different: We are a full-service brokerage. That means you get everything a traditional agent provides for their clients.

No listing agent commission is paid to Houwzer. Rather, $995 is paid at the closing table, which covers the hard costs of selling your home. Houwzer invests upfront in a for sale sign, hi-res pictures, virtual tour, social media advertising, and more. And again, we only get paid out if we sell your home.

A Houwzer agent will meet you at your home to discuss a home estimate and listing strategy. The Houwzer listing team will be available to answer any questions you may have, host open houses, and guide you through any offers that come in. Once an offer has been accepted, you will have Houwzer’s experienced agents negotiate on your behalf and make sure your listing is on track to close.

List with Houwzer, get a full-service brokerage to bring you to the closing table, and walk away with more money in your pocket. It’s that simple.


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